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Piece Rates Calculator

April 7, 2022 3:32 pm

In 2021 the AWU successfully ran a case before the Fair Work Commission to vary the Horticulture Award to provide guaranteed minimum rates of pay for pieceworkers.

From 28 April 2022, every piecework employee must be paid at least the minimum award rates for each day of work.

This is a safety net of earnings for pieceworkers. Pieceworkers will still be paid according to their productivity and competent pieceworkers should earn at least 15% more than the minimum rates.

GUARANTEED MINIMUM RATES FOR ALL PIECEWORKERS

Here are the minimum rates that will apply for casual pieceworkers from 28 April 2022, along with some examples of minimum weekly pre-tax earnings based on the minimum rates:

Level Minimum casual hourly rate Gross earnings: 20 hours of work Gross earnings: 30 hours of work Gross earnings: 38 hours of work
1 $25.41 $508.20 $762.30 $965.58
2 $26.15 $523.00 $784.50 $993.70
3 $26.90 $538.00 $807.00 $1,022.20


NOTE: Employers may make reasonable
deductions to cover genuinely agreed expenses such as accommodation, food or transport.

MINIMUM RATES FOR COMPETENT PIECEWORKERS

From 28 April 2022, employers must fix their piece rates at a level that enables a pieceworker competent at the piecework task working at average productivity to earn at least 15% more than the minimum award rates.

Pieceworker competent at the piecework task means an employee with at least 76 hours of experience performing the relevant task (e.g. 76 hours of experience picking apples or blueberries).

Average productivity is calculated by dividing the total output of the competent pieceworkers by the total hours worked.

EXAMPLE: There are 20 piecework employees working on a blueberry farm and they all have at least 76 hours of experience picking blueberries. During a week where they each worked 38 hours, the pickers picked a total of 1,520 kilograms of blueberries.

The group worked a total of 20 people x 38 hours = 760 hours during the week.

1,520 kilograms divided by 760 hours = 2 kilograms per hour.

Using this example, the employer must set the piece rates at a level that enables a pieceworker picking 2 kilograms per hour to earn the minimum award rates plus 15%.

Here are the minimum rates that will apply for competent piecework employees working at average productivity (including the 15% piecework loading) from 28 April 2022, along with some examples of minimum weekly pre-tax earnings:

Level Minimum casual rate plus 15% Minimum gross earnings: 20 hours of work Minimum gross earnings: 30 hours of work Minimum gross earnings: 38 hours of work
1 $29.22 $584.40 $876.60 $1,110.36
2 $30.07 $601.40 $902.10 $1,142.66
3 $30.94 $618.80 $928.20 $1,175.72


NOTE: Employers may make reasonable deductions to cover genuinely agreed expenses such as accommodation, food or transport.

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